The worsening fiscal crisis facing the Nigerian government has put the spotlight on the corruption and inefficiency in the country’s ailing refineries as workers of the state-owned institutions have been paid billions of naira despite producing no refined product.
“I can tell you that Nigeria is broke,” Chris Ngige, Nigeria’s minister of labour and productivity, said in July. “There is no money to fund capital projects next year”.
Dataphyte findings showed the minister’s statement contradicts Nigerian National Petroleum Company (NNPC) Limited’s books which showed directors at Nigeria’s decrepit refineries are hurling home allowances that will make judges and even some private business owners live in wonderlands.
Data sourced from NNPC Limited showed Kaduna, Warri and Port-Harcourt refineries did not generate revenue or refine a single drop of crude oil between 2020 and 2021.
Despite these, the refineries’ directors make more annual earnings than critical sectoral leaders in the country such as the Chief Justice of the Federation, President of Appeal Court, Head of Service, Auditor General of the federation among others.
For instance, a review of the salary structure of NNPC’s refineries with losses showed most of the directors could be earning almost twice of what the President of Nigeria earns.
According to the financials of the Kaduna refinery, the highest-paid director earns N25.392 million annually (this amount is excluding Pension contributions and other certain benefits). Aside from the highest-earning director, Two directors at the Kaduna refinery earn between N20 million and N25 million.
Engineer Ezekiel Ozarolube is the highest-ranking director at the Kaduna Refinery Company.
However, according to the Revenue Allocation and Fiscal Commission, the Nigerian President earns N14.058 million annually (this money is inclusive of allowance).
The highest-paid director in Warri refinery earns N38.1 million annually, 63.15% more than the total earnings (Salary plus allowances) of the President annually.
Four directors earn N13 million and above at the Warri Refinery Company, according to the details of the officially released audited financial statements.
The highest-ranking director of the refinery goes by the name Babatunde Bakare, based on the details of the Warri Audited financial statement for 2021.
While the Port-Harcourt refinery did not say what its highest earning director gets, four directors earn N12 million and above annually, just 14% below what the Nigerian President earns. Engineer Ahmed Dikko is the highest-ranking director at the Port-Harcourt refinery.
These directors also earn more than the Chief Justice of Nigeria, Justices of the Supreme court, President of Nigeria’s Appeal Court, Head of Service, and Auditor General of the federation among others.
High Emoluments Despite Surviving on Loan
Details of the published NNPC Group audited financial statements, show that between 2020 and 2021, these three refineries were granted credit worth N2.767 trillion to fund operations, processing lease and operating lease by the parent company. This is because no money was made by the refining companies between 2020 and 2021.
There have been concerns about the management of Nigeria’s Oil company, with calls for better financial handling of the Oil company.